Peso Gains Amid Broad-Based Greenback Weakness

Losses in spot USD/PHP have resulted in a breach of the ascending 50-DMA, a notable layer of support. The pair last deals -0.275 at PHP58.005, with bears now setting their sights on Oct 28 low of PHP57.830. The all-time high of PHP59 continues to draw attention on the topside.

• USD/PHP 1-month NDF last -0.11 at PHP58.05, heading lower after a close below the 50-DMA yesterday. Bears look for a further slide through Oct 28 low of PHP57.85, while bulls eye Nov 3 high of PHP59.05 for initial resistance.
• Offshore players snapped up $6.47mn in Philippine stocks Tuesday, the third consecutive daily inflow. The PSEi struggled to make any headway beyond its 100-DMA and returned below that moving average, extending its pullback this morning.
• The Philippines' agricultural production rose 1.80% Y/Y in Q3 after a 0.60% contraction in Q2. Rice production was up 1.0% Y/Y. Separately, the government reported that the damage wrought by tropical storm Paeng on the agricultural sector has climbed to PHP4.27bn.
• Thursday will see the release of Q3 GDP data. The local statistics authority revised the Q2 growth estimate to +7.5% Y/Y from +7.4%.